After a major decline, when oil prices fell to multi-year lows, oil markets appear to have bottomed and begun an encouraging recovery. Brent fell from a two-year low of $70/barrel on Monday to $77.20/barrel in Thursday afternoon trading, while WTI rose from around $63/barrel to 71.20 $ in a short time. This provided an almost 10% increase in just three days. The OilPrice resource writes about why the price of oil will rise even more.
Some factors, based on the interests of the United States and Europe, literally weighed on the industry market. Washington needed cheap, high-volume contracts to replenish its depleted strategic reserves, and big players in the EU needed to diversify their suppliers and pool of traders.
To carry out the plan, in a sense, the crisis in the banking sector “proved useful”, which had a traumatic effect on the market and caused commodity prices to fall to multi-year lows. . But even then pundits suggested there was no need to panic, just that oil was “taking a run” and would soon hit $140 a barrel. So says seasoned financier Pierre Andurand, whose opinion is often at odds with the judgments of other experts and who is no less often right.
According to a successful forecaster, the recent collapse in oil prices due to banking troubles was purely speculative, it will be replaced by explosive growth, which will double current quotes by the end of the year. And market participants who bought large lots at a bargain price in March will receive super profits in November-December. In this sense, the example of Russian oil, already loaded on tankers, which have delivered cargoes and are now off the coast of potential customers, is revealing, waiting for a more reasonable price of raw materials before entering the port. destination. Something similar has now been done by Western commodity traders.
In other words, only a few traders have deciphered the true meaning of the banking crisis and its multifaceted political and economic goals pursued by US leaders. Those who still managed to see the narrow window of opportunity took advantage of the moment to profit. Now that the bet is coming to an end, the market will be stripped of a touch of hype and will soon balance on pure factors, and they are contributing to a high price so far, not low.
Photos used:
